Virginia Forge Co., a subsidiary of MFC Group in Buchanan, VA, will proceed with an expansion program estimated at $4.6 million following approval of a local tax incentive allowance. County Supervisors of Botetourt County, in the region north of Roanoke, VA, approved an abatement worth slightly over $66,000 over four years, in exchange for Virginia Forge’s commitment to expanding the operation and hiring 38 more workers.
Currently, the Virginia Forge operations include bar cutting equipment, two Eumoco transfer presses, quench and temper lines, and 24 automated CNC turning centers.
The plant employs about 70 workers, and produces automotive wheel hubs and assemblies.
Specific details of the expansion program were not announced. According to local news reports, VFC lobbied for the tax break with the assurance that its investment would help it to compete better for new work orders.
The tax abatement is reported to be “performance-based”: Virginia Forge will invest $4.6 million on new construction and production equipment through 2018. It also will add at least 38 new workers at an average annual salary of $30,534. If those targets are met, Virginia Forge will receive grants from the county’s Industrial Development Authority totaling $66,607 to offset taxes on real estate and machinery over four years. The actual amount will be determined by how closely VFC matches the agreement’s targets for investments and new employees.